Macy's Inc

Valuation Analysis

About the Company

Macy's, Inc., an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells various merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and Bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.

Macy's Inc Stock at a Glance

Macy's Inc (M) is currently trading at $25.37 with a market capitalization of $6.7B. The trailing P/E ratio stands at 10.48x, with a forward P/E of 11.13x. The 52-week range spans from $10.54 to $25.65; the current price is 1.1% below the yearly high. Year-over-year revenue growth stands at +2.1%. The net profit margin stands at 2.94%.

💰 Dividend

Macy's Inc pays an annual dividend of $0.77 per share, representing a yield of 3.04%. The payout ratio stands at 30.52%.

📊 Analyst Rating

10 analysts rate Macy's Inc (M) on consensus: Hold. The average price target is $21.50, implying -15.25% from the current price. Analyst price targets range from $9.00 to $27.00.

Macy's Inc: The Investment Case in Detail

Macy's Inc (M) operates in the Consumer Cyclical — specifically Department Stores — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 76.9% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 2.1%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 2.94%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 14.53% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

At a PEG of 4.37, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 7.45x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The share is trading at 98.1% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.
• The dividend yield near 3.04% combined with a payout ratio of 30.52% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (14.53%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Macy's Inc?

Compare top-rated brokers — low fees, trusted providers, fully regulated.